| Vol. - No.
|
Vol.5 - No.2
|
| Date
|
Jun., 2016 |
| Title
|
The Economics of Skyscraper Construction in Manhattan: Past, Present, and Future |
| Author
|
Jason Barr |
| Institutions
|
Rutgers University, Newark, USA |
| Abstract
|
This paper discusses the economics of skyscraper construction in Manhattan since 1990. First the paper reviews the economic theory of skyscraper height. Next it documents the frequency and heights of skyscraper construction in the last 25 years. Then the paper reviews the relative movements of office rents, condominium prices, and construction costs. Statistical results suggest that the resurgence of Manhattan's skyscraper construction is being driving by the rise in the average price of apartments, and is not being driven by rising office rents or falling construction costs. Statistical evidence shows that the height premium has not been rising over the last decade. Developers have been purchasing air rights (and bidding up the prices) in order to satisfy the demand for supertall buildings. In the next five to ten years, Manhattan is likely to see over thirty 200-meter or taller buildings, as compared to only four since 2010. |
| Keyword
|
Construction; Economics; Manhattan; New York; Skyscrapers |
| PP.
|
PP.137~144 |
| Paper File
|
 View |